The Supreme Court has sought a response from the Serious Fraud Investigation Office (SFIO) on Vijayraj Surana’s plea seeking relaxation of his bail conditions in a ₹10,000 crore financial fraud case. The top court had earlier granted him bail, noting that prolonged detention before trial amounts to “punishment without conviction.”
New Delhi: The Supreme Court of India on Thursday asked the Serious Fraud Investigation Office (SFIO) to give its response to a plea filed by Surana Group Managing Director, Vijayraj Surana. He has requested the top court to relax some of the bail conditions imposed on him in a case linked to a massive alleged financial fraud of over Rs 10,000 crore.
Earlier, on May 20, the Supreme Court had granted bail to Surana, who is currently facing trial under the Companies Act and various sections of the Indian Penal Code (IPC) for his alleged role in the financial scam.
While granting bail, the bench headed by Chief Justice B. R. Gavai had noted that keeping an accused in custody for too long before trial begins would be unfair.
The court observed,
“Prolonged detention before the commencement of trial would amount to punishment without conviction.”
On Thursday, a bench comprising Chief Justice B. R. Gavai and Justices K. Vinod Chandran and Vipul M. Pancholi heard submissions made by senior advocate C. U. Singh, appearing for Surana.
After hearing the arguments, the bench issued a notice to the SFIO and fixed the next hearing of the case after four weeks. The Chief Justice stated,
“Issue notice. Returnable after four weeks.”
During the hearing, the counsel representing the SFIO opposed Surana’s request for relaxation, arguing that the accused first seeks bail and then asks for relaxation of the very conditions that ensured his release. The SFIO maintained that the restrictions were necessary to ensure Surana’s cooperation in the trial process.
While granting bail in May, the Supreme Court had ordered that Surana be released subject to the satisfaction of the Additional Sessions Judge (Special Judge for Companies Act cases) in Chennai.
The court had also directed him to submit his passport to the trial court, if not already done, and had barred him from leaving India without prior permission of the court. It also warned that the accused
“must not attempt to influence witnesses or delay the trial.”
The bench made it clear that Surana
“must cooperate fully to ensure an expeditious disposal of the case.”
It had also cautioned that
“any attempt to protract the proceedings could result in the cancellation of bail.”
The SFIO has accused the Surana Group and its managing director of being involved in one of the largest corporate frauds in the country, alleging that the group owes around Rs 10,233 crore to various banks and financial institutions.
The Ministry of Corporate Affairs had ordered an investigation into the group’s activities on March 28, 2019, which later led to a criminal case being filed in 2023 before a special court in Chennai that deals with offences under the Companies Act. There are also multiple related cases ongoing in different courts.
Earlier, both the Special Court for Companies Act cases and the Principal Sessions Court in Chennai had rejected Surana’s bail applications, citing the massive scale of the alleged fraud and the ongoing nature of the SFIO investigation.
The SFIO had argued before the Supreme Court that Surana was involved in an “enormous economic offence” involving public funds and that his release could “impede the ongoing proceedings.”
However, while granting bail, the top court noted that the trial had not yet started, despite the large number of accused persons and extensive evidence involved in the case.
The bench observed that the case had
“90 accused persons, 125 witnesses, and voluminous documentary evidence.”
The court further remarked that under such circumstances, the completion of the trial anytime soon appeared unlikely.
The Surana Group, based in Chennai, operates in sectors including energy, metals, and infrastructure. The company came under serious scrutiny after allegations surfaced about massive loan defaults and diversion of public funds.
The SFIO’s probe revealed that several companies under the group’s umbrella collectively owed over Rs 10,000 crore to various public sector banks, raising major concerns about corporate governance and financial mismanagement within the conglomerate.
With the Supreme Court’s latest notice, the SFIO will now have to respond to Surana’s plea seeking relaxation of bail conditions. The next hearing is expected after four weeks, where the top court will consider the SFIO’s reply and decide whether any relief can be granted to the accused.
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